AUSTRIA. A strong rise in income from retail and dining activities helped Vienna Airport’s Retail & Properties segment grow revenue by +11.1% to €162.6 million year-on-year in 2019.
Despite the modernisation of Terminal 2 and the temporary shutdown of some shops, the company reported a double-digit year-on-year rise in revenue from both retail (+12.9%) and gastronomy (+19.4%).
The strong performance of the Retail & Properties division came as overall group revenue increased +7.2% year-on-year to reach €857.6 million and net profit increased +15.7% to €175.7 million.
Passenger numbers at Vienna Airport for the year were up +17.1% at 31.7 million. Traffic for the overall group, which includes its strategic investments at Malta and Kosice airports, increased +15% year-on-year to 39.5 million.
Flughafen Wien (Vienna Airport) Management Board Member Günther Ofner said: “Flughafen Wien is developing very well, as shown by a +7.2% growth in revenue and +15.7% increase in the net profit for the period.
“For this reason, we will propose an increase in the dividend by +27% to €1.13/share to the upcoming Annual General Meeting, from which employees will also profit. We expect further growth in 2020, which in turn also creates new jobs and added value.”
The airport is forecasting revenue of at least €870 million (US$961 million) and net profit of at least €180 million (US$198.5 million) for 2020, but Ofner added that there was “high uncertainty” on how much COVID-19 would impact 2020 performance.
“The earnings guidance for 2020 still seems achievable,” he added. “A better assessment will be possible in four to six weeks. A cost-cutting package to safeguard earnings will be introduced nevertheless. From a historic point of view, such external shocks have only resulted in a temporary reduction of growth.”
Speaking about traffic performance for 2020, Management Board Member Julian Jäger said: “After a strong growth of passenger figures of +9.8% from 1 January until 27 February 2020, travel behaviour has significantly fallen in the last couple of days: a decrease in passenger figures from -9% to -12% has been recorded.
“From today’s perspective, [year-on-year] passenger and traffic growth of +3% to +5% can still be achieved; the longer travel behaviours stays negatively impacted by the coronavirus, the more difficult this will become.
“In any case, Flughafen Wien AG is economically and operationally well prepared, and we will prevail in this challenging situation for the aviation and travel industries. Mid-term to long-term, we are optimistic. As in similar situations like SARS, Ebola, 9/11 and the economic crisis [of] 2009, the aviation industry will quickly rebound after temporary shocks.”
